Course Title: Implement and maintain internal control procedures

Part B: Course Detail

Teaching Period: Term1 2014

Course Code: COTH5002C

Course Title: Implement and maintain internal control procedures

School: 650T TAFE Business

Campus: City Campus

Program: C5260 - Diploma of Accounting

Course Contact : Claudio Marasco

Course Contact Phone: +61 3 9925 1561

Course Contact Email:claudio.marasco@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Mr Hemant Goel (Flexed Teacher)

Email: hemant.goel@rmit.edu.au

Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

None

Course Description

This unit describes the performance outcomes, skills and knowledge required to review corporate governance requirements, implement operating procedures and monitor policy. This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.


 


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC506A Implement and maintain internal control procedures

Element:

1. Review corporate governance requirements
2. Implement operating procedures
3. Monitor policy

Performance Criteria:

1.1 Corporate governance requirements are identified and analysed to determine application to operations
1.2 Clarifications on application of corporate governance requirements are accessed from authoritative and recognised sources
1.3 Internal control procedures are reviewed and developed reflecting the application of corporate governance requirements to internal operations
2.1 Financial delegations and accountabilities are maintained and reviewed to ensure consistency and compliance with internal control procedures
2.2 Required reports are produced, reviewed and distributed within agreed timelines
2.3 Timetables for the implementation of corporate governance requirements are developed in consultation with stakeholders
2.4 Internal control procedures are detailed and documented in standardised formats to promote consistency of use
3.1 Applications of corporate governance requirements are developed from published sources or recognised practices
3.2 Performance indicators are developed and reported on to evaluate compliance with internal control procedures 3.3 Variations in adoption of corporate governance requirements in operations are identified and evaluated to determine causes
3.4 Modifications to procedures are developed and implemented to facilitate compliance with internal control procedures
 


Learning Outcomes



Details of Learning Activities

Using the textbook, case studies and other materials, students will be progressively introduced to the implementation of corporate governance through the internal control of the accounting system.   With respect to the full-time students, in-class activities will account for 32 of the total nominal hours of 40 allocated to this course and will include a range of self-paced and collaborative learning activities such as class discussion, debate and review, observations based on factual media cases, tests and a comprehensive case study which involves a simulated/real workplace environment. The 8 hours of self-directed/self-paced learning by full-time students will be taken up with work on the case study outside scheduled class time.

With respect to the flexed (part-time) students, in-class activities will account for around 16 of the total nominal hours of 40 allocated to this course (8 by 2-hour classes starting from week 2) and will include a range of self-paced and collaborative learning activities such as class discussion, debate and review, observations based on factual media cases, tests and a comprehensive case study which involves a simulated/real workplace environment.  The 24 hours of self-directed/self-paced learning by flexed students will be taken up with prescribed activities and work as per the teaching schedule (indicated below) and work on the case study outside scheduled class time.  The schedule for the flexed students will comprise 9 by 2-hourly classes each fortnight (weeks 2, 4, 6, 8, 10, 12, 14, 15 and 16) plus two, 1-hourly collaborate sessions, scheduled for weeks 11 and 13.  With respect to the online collaborate sessions, flexed students must ensure that they have Java script installed on their computers (can be installed from https://java.com/en/download/index.isp) and a headset with microphone.

Please note that the format for all classes will be a two-hour class per session. The learning activities described above will be covered in these classes and as prescribed above also, the hours of self-directed learning will be undertaken on the case study by students. We expect you to participate and contribute in all scheduled learning activities.

The collaborative classroom based activities will include group discussion and problem solving activities and the opportunity to practice your skill in your workplace via the case study. 


Teaching Schedule

The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.  Please refer to Learning Activities (above) with reference to instructions regarding work to be completed outside teaching hours.

FULL-TIME TEACHING SCHEDULE

WeekWeek CommencingTopicsAssessment
110/2/2014

Course Induction
• Course delivery and assessment details
• Course support documents
• Online learning environment including Blackboard
• Grading
• Plagiarism
• Appeals/Extensions
• Feedback/Privacy
• Submission requirements/Resubmission policy
• Where to get support
• Student responsibilities
• Use of Turnitin (if applicable)


 Pre-Training Review (if applicable)
• Includes skills analysis and Recognition of Prior Learning and Credit Transfers


 Introduction to Course
Topic I – Corporate Governance and Ethics
• Leeson Chapter’s 11, 12, 13 and 14 (and any associated exercises from these chapters)
• Harris Scarfe and Melbourne Storm Observations to discuss and review
• Olympus fraud case Observation to discuss and review

 
217/2/2014

 Topic 1 to complete
 Topic 2 – Fraud
• Leeson Chapter 6 (and any associated exercises from these chapters)
• CPA fraud and Herald-Sun articles to discuss

 
324/2/2014 Topic 3 – The 7 Internal Control Principles
• Leeson Chapter 2 and notes (and any associated exercises from these chapters)
• CPA Internal Controls Document to discuss
• RMIT Fraud case Observation to discuss and review
• Barings Bank Observation to discuss and review
• Tricon and SBV Observation to discuss and review
 
43/3/2014Topic 4 – Internal Control Objectives of Accounts Payable, Purchases and Inventory
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Victoria University fraud case Observation to discuss and review
 Test 1
• Preparation and review for test 1 in week 5
 
510/3/2014 Test 1
• 2-hour open book test covering topics 1-4
Test 1
You will receive the feedback by week 8
617/3/2014Topic 5 – Internal Control Objectives of Accounts Receivable and Sales
• Leeson Chapter 3 (and any associated exercises from these chapters)
 
724/3/2014 Topic 6 – Internal Control Objectives of Payroll
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Clive Peeters fraud case Observation to discuss and review
 
831/3/2014Topics 7 & 8 - Internal Control Objectives of Cash, Bank Accounts and Non-Current Assets
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Nelson Rivera fraud case Observation to discuss and review
 
97/4/2014Topic 9 - Internal Control Objectives within a computerised accounting system
• Leeson Chapters 4 and 5 (and any associated exercises from these chapters)
 
1014/4/2014 Case Study
• Virtual Office department procedures discussed
• Students to gather evidence from information or from visit
• Preparation and review for week 15
 
1128/4/2014 Topic 10 – Audit techniques
• Leeson Chapter 7 and materials (and any associated exercises from these chapters)
Test 2
• Preparation and review for test 2
 
125/5/2014 Test 2
• 2-hour open book test covering topics 5-10
Test 2
You will receive the feedback by week 15
1312/5/2014 Case Study
• Preparation and review for week 15
 
1419/5/2014 Case Study
• Final Preparation and review for week 15
 
1526/5/2014 Case Study
• Presentations and submission of Audit Reports
Case Study Presentations and Audit Report Submission
You will receive the feedback in week 16
162/6/2014 Special consideration/Finalisation of results/ModerationSpecial consideration/Finalisation of results/Moderation

 FLEXED TEACHING SCHEDULE

WeekWeek CommencingTopics and Self-Learning ActivitiesAssessment
110/2/2014Introduction to Course
Topic I – Corporate Governance and Ethics
• Leeson Chapter’s 11, 12, 13 and 14 to read
 
 
2

17/2/2014

Class

Course Induction
• Course delivery and assessment details
• Course support documents
• Online learning environment including Blackboard
• Grading
• Plagiarism
• Appeals/Extensions
• Feedback/Privacy
• Submission requirements/Resubmission policy
• Where to get support
• Student responsibilities
• Use of Turnitin (if applicable)


Pre-Training Review (if applicable)
• Includes skills analysis and Recognition of Prior Learning and Credit Transfers


Introduction to Course (continued)
Topic I – Corporate Governance and Ethics
• Leeson Chapter’s 11, 12, 13 and 14 (and any associated exercises from these chapters)
• Harris Scarfe and Melbourne Storm Observations to discuss and review
• Olympus fraud case Observation to discuss and review
 

 
 3 24/2/2014Topic 2 – Fraud
• Leeson Chapter 6 (and any associated exercises from these chapters) to read
• CPA fraud and Herald-Sun articles to read
 
 4

 3/3/2014

Class

Discuss issues from Topic 2

Topic 3 – The 7 Internal Control Principles
• Leeson Chapter 2 and notes (and any associated exercises from these chapters)
• CPA Internal Controls Document to discuss
• RMIT Fraud case Observation to discuss and review
• Barings Bank Observation to discuss and review
• Tricon and SBV Observation to discuss and review

Topic 4 – Internal Control Objectives of Accounts Payable, Purchases and Inventory
• Leeson Chapter 3 (and any associated exercises from these chapters) to discuss and review
• Victoria University fraud case Observation to discuss and review

 
 5 10/3/2014Test 1
• Preparation and review for test 1 in week 6
 
 6

 17/3/2014

Class

Test 1
• 2-hour open book test covering topics 1-4
Test 1
You will receive the feedback by week 8
 7 24/3/2014

Topic 5 – Internal Control Objectives of Accounts Receivable and Sales
• Leeson Chapter 3 (and any associated exercises from these chapters) to read

Topic 6 – Internal Control Objectives of Payroll
• Leeson Chapter 3 (and any associated exercises from these chapters) to read
• Clive Peeters fraud case Observation to raed

 
 8

 31/3/2014

Class

Discuss issues from Topics 5 and 6

Topics 7 & 8 - Internal Control Objectives of Cash, Bank Accounts and Non-Current Assets
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Nelson Rivera fraud case Observation to discuss and review

 
 9 7/4/2014

Topic 9 - Internal Control Objectives within a computerised accounting system
• Leeson Chapters 4 and 5 (and any associated exercises from these chapters) to read

 
 10

 14/4/2014

Class

Discuss issues from Topic 9

Case Study
• Office department to audit discussed
• Students to gather evidence from own workplace
• Preparation and review for week 15

 
 11 28/4/2014

Topic 10 – Audit techniques
• Leeson Chapter 7 and materials (and any associated exercises from these chapters) to read

• Collaborate Session

 
 12

 5/5/2014

Class

Discuss issues from Topic 10 and case study

Test 2
• Preparation and review for test 2

 
 13 12/5/2014

Case Study
Preparation and review for week 16

• Collaborate Session

 
 14

 19/5/2014

Class

 Test 2
• 2-hour open book test covering topics 5-10
Test 2
You will receive the feedback by week 16
 15

 26/5/2014

Class

 Case Study
• Preparation and review for week 16 with Teacher in-class
 
 16

 2/6/2014

Class

Case Study
• Presentations and submission of Audit Reports
Case Study Presentations and Audit Report Submission
You will receive the feedback within 2 weeks

Please note:

1. The mid-semester break is from 17/4/2014 to 23/4/2014 for all students.
2. The teaching schedule is subject to change at the teacher’s discretion. Notification of changes can be made directly in class by the teacher, emailed to each student or via an announcement placed on the Blackboard.
 


Learning Resources

Prescribed Texts

Leeson, Di Sisto & Flanders, Internal Controls & Corporate Governance. 3rd Edition, 2009. Pearson Prentice Hall.

9781442504660


References


Other Resources

Other materials will be placed on the Blackboard and will be used when directed so by your teacher.


Overview of Assessment

Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress
 


Assessment Tasks

Students must demonstrate an understanding of all elements of competency to be deemed competent and will be required to demonstrate all of the indicators which are shown in the Unit Mapping Document, the Graded Assessment Matrix for each assessment and the Graded Assessment Grading Sheet.

These indicators are detailed further in this document.

The following range of assessment methods will be used to assess practical skills and knowledge:

1. evaluating an integrated activity which combines the elements of the competency for the course – via the two tests and the case study;
2. verbal or written questioning on underpinning knowledge and skills – via the two tests and case study;
3. setting and reviewing workplace projects and business simulations – via the case study;
4. evaluating samples of work - via the two tests and the case study; and
5. accessing and validating third party reports - via the two tests and the case study.

Crtical aspects of Assessments:

Evidence of the following is also essential:

• interpret and comply with corporate governance requirements, organisational policies, financial delegations and accountabilities;
• review corporate governance requirements and implement effective operating procedures; and
• monitor policy and relevant financial legislation.
 

Assessment Tasks:

Assessment will be undertaken in a classroom via two (2) tests which will cover all of the topics and a major case study which will be a simulated workplace practise (for full-time students) and an actual workplace audit (for Flexed students) . In the case study, the students will assume the role of auditors and will audit the internal controls of the RMIT Virtual Office (for the full-time students or the actual workplace for the Flexed students and make recommendations based on their findings and analysis. The later will be presented via a written report and a in-class presentation.

You are required to complete the 3 assessment tasks which you must successfully complete to be deemed competent in this course. The 3 assessment tasks are as follows:

1. Tests 1 and 2

The tests will be structured by incorporating short answers, multiple choice questions, true or false questions and other short-answer (scenario) questions. As these tests are competency based assessments then a competent (CA) grade must be achieved for all two tests.
 

Test 1 (Conducted in week 5 for full-time students and week 6 for Flexed students)

1 3/4 hour open-book test
To be deemed competent in this test you must be able to cover and show an understanding of the contents of topics 1-4 as per the indicators on the assessment matrix attached to the front of the test.
 

Test 2 (Conducted in week 12 for full-time students and week 14 for Flexed students)

1 3/4 hour open-book test
To be deemed competent in this test you must be able to cover and show an understanding of the contents of topics 5-10 as per the indicators on the assessment matrix attached to the front of the test.


2. Case Study - Presentation and Audit Report (please refer to the case study brief located in the Assessments section of the Learning Hub for a detailed explanation)

A. Case Study (Week 15 for full-time students and week 16 for flexed students)

The Case Study for full-time students requires teams of students (usually 4 per team) to audit a division of the Virtual Office at RMIT and in week 15,  to present a description of how the two processes work as a result of their analysis and the strengths and weaknesses and recommendations against the weaknesses with respect to the two internal control processes audited in the Virtual Office.  The presentation will take the form of a powerpoint presentation in class which must be handed-in to the Teacher at the end of the presentation together with any other relevant documents and a signed cover sheet by the team members. As the presentation is a competency based assessment, then a competent (CA) grade must be achieved for this assessment.  To be deemed competent in this assessment you must be able to cover and show an understanding of the indicators on the assessment matrix.

For Flexed students, a department of yopur workplace will be audited and in week 16, you will to present a description of how the process works as a result of your analysis and the strengths and weaknesses and recommendations against the weaknesses with respect to the internal control processes audited in your organisation. The presentation will take the form of a powerpoint presentation in class which must be handed-in to the Teacher at the end of the presentation together with any other relevant documents and a signed cover sheet. As the presentation is a competency based assessment, then a competent (CA) grade must be achieved for this assessment. To be deemed competent in this assessment you must be able to cover and show an understanding of the indicators on the assessment matrix.
 

B. Audit Report (Week 15 for full-time students and week 16 for flexed students)

The report is to be handed-in with the presentation in week 15 by full-time students and week 16 by Flexed students and it is to be a formal document addressed to the Manager (Teacher) of the Virtual Office (full-time students) or to the Manager in question from your workplace (for Flexed students) detailing the two processes audited and the strengths, weaknesses and recommendations against weaknesses. As the Audit Report is a competency based assessment, then a competent (CA) grade must be achieved for this assessment.  To be deemed competent in this assessment you must be able to cover and show an understanding of the indicators on the assessment matrix.

Your teacher will discuss the assessment matrix for each assessment with the class at the beginning of the semester and prior to the assessment taking place.  Each student will also receive this document completed by the teacher a the feedback with regard to performance in each assessment.


Assessment Matrix

To be deemed competent students must demonstrate an understanding of all elements of a competency. Assessment methods have been designed to measure achievement of each competency in a flexible manner over multiple tasks. Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met.

All competency based assessments for this course must be completed to achieve CA. Each assessment task will also carry a numerical weighting to be used for grading purposes. The grade applied to this weighting will only be awarded if a CA has been achieved in all compulsory assessment tasks.

If a student has been marked NYC (Not Yet Competent) in any of the assessment tasks, the weighting will carry no value until the student has obtained CA. If a CA is achieved on re-assessment then only a competent – enterprise will be granted for that assessment.

Reassessments will only be granted to students who were either unsuccessful in the first attempt or have an approved special consideration application.

To be deemed competent in this unit the participant will be required to demonstrate all indicators which are shown in the Marking Guide/Assessment Matrix for each assessment and the Graded Assessment Grading Sheet. The indicators described above are detailed further in this document together with the three assessments.

Marking Guide and Assessment Matrix (competency) for each assessment:

Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention. The marking guides or assessment matrix for each assessment together with the assessment will be discussed in class by your teacher at the beginning of the semester and prior to the assessment taking place.  Each student will also receive this document completed by the teacher a the feedback with regard to performance in each assessment.  Feedback is incorporated in the assessment matrix which each student will be given before each assessment. This will be completed by the teacher who will then go over this document and the feedback with each student individually. The assessment matrix documents are attached to each assessment.
 

Marking Guide (Grading)
 

After achieving competency, we then grade your performance in the unit.  This gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.  The grading is according to the following criteria:

 1. LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK

We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to implementing and maintaining internal controls procedures.

2. DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING

We are looking for depth of understanding of the key concepts and knowledge required in implementing and maintaining an internal control system. You should be able to demonstrate a thorough understanding of all applicable internal control procedures in all the assessment tasks.

3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING

We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. You also need to show an understanding of the kinds of problems that can arise in implementing and maintaining internal control procedures and how these might be addressed.

4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT

We expect to see all students working together effectively and efficiently as part of a simulated work-based team inlcluding attending regular meetings outside of the teaching hours. We also expect timely completion and submission of all required assessment tasks.

5. COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK

We expect to see contributions by all students in a team towards contributing to a teamand the team’s interaction with students from the Virtual Office. In addition your tasks should demonstrate a very good understanding of strategies for a collaborative approach to Team management in the simulated workplace and when also collaborating with each member as part of the requirements of the Case Study.

Final Grades Table:

 

CHDCompetent with High Distinction
 
CDICompetent with Distinction
 
CCCompetent with Credit
 
CAGCompetency Achieved – Graded
 
NYCNot Yet Competent
 
DNSDid Not Submit for assessment
 

Further information regarding the application of the grading criteria will be provided by your teacher.
 

Other Information

Submission Requirements:

Assessment tasks will all be submitted to your teacher in class and the case study must include a signed cover sheet

Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information: http://www.rmit.edu.au/students/assessment/extension
Form to use: http://mams.rmit.edu.au/seca86tti4g4z.pdf
Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information: http://www.rmit.edu.au/browse;ID=g43abm17hc9w
Form to use: http://mams.rmit.edu.au/8a5dgcaqvaes1.pdf

Resubmissions (VET Programs):
If you are found to be Not Yet Competent in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Adjustments to Assessment
In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:
More Information: http://rmit.edu.au/browse;ID=7usdbki1fjf31
 

You should:

• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available from the Student forms website.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.

Course Overview: Access Course Overview